What Is Pension Net Worth
Pension net worth measures the value of your pension benefits compared with other assets and debts. It shows how much retirement income a pension can provide relative to your overall financial position.
How to Calculate Pension Net Worth
Start by finding the present value of your expected pension payments using your plan statement or an online pension calculator. Subtract any surrender charges, early retirement reductions, or fees. Add other retirement assets, then subtract non-pension liabilities to see your net position.
Why Pension Net Worth Matters
Knowing your pension net worth helps you plan for retirement income, compare job offers, and decide whether to take a lump sum or annuity. For more on valuing retirement income, see Investopedia: Pension.
